Franchise-Guide

How should you look for the right franchise system?

Systems Assessment


You can use the systems assessment to examine the franchise systems you are interested in in detail. For: those people interested in setting up their own business through franchising should examine in detail whether the franchise system they are looking at fulfils all conditions for a successful business start-up.

Franchisor

  • What legal structure has the franchisor adopted?
  • Is the franchisor registered in the Commercial Register?
  • When was the company founded and how long has it been using franchising?
  • Is the franchisor a member of the national franchise association?
  • Is the reputableness of the franchisor questioned by official groups?
  • Has the management responsible in the franchise system been involved in a bankruptcy?
  • How has the company’s turnover developed since its foundation?
  • How many people does the franchisor employ?
  • How many employees are responsible for the franchise area?
  • Do the personnel and set-up of the head office correspond with the professionalism expected?
  • Does the franchisor possess sufficient capital?
  • Is the franchisor affiliated in some way with another company offering similar products or services?

Franchise Development

  • Does the system form the basis of the recognised franchise term?
  • What steps were taken to build up the franchise system?
  • What steps has the franchisor undertaken to further develop the system?
  • How many franchise businesses belong to the system at home and abroad?
  • How has the total number of franchise businesses changed over the last three years?
  • How high is the fluctuation of franchisees and what are the reasons for this?
  • What steps is the franchisor undertaking to further develop his system and to adapt to market changes?
  • Have foreign systems successfully adapted to the conditions of the home market?
  • Are there only pilot projects on the home market or is there already a network of franchise partners?
  • What is the overall national and international turnover of the system?
  • What is the average annual turnover of a franchisee business?
  • What is the average turnover of a franchisee business in the first twelve months?

Intangible Values

  • Is there a specific corporate philosophy with guiding principles that shape the way the partners act and think?
  • Does the system have a specific corporate culture?
  • Is the system well known by the public and what reputation does it have?
  • Has the system-specific know-how been put together in an understandable and practicable way?
  • What subjects are covered by the systems manual and just how comprehensive is the information?
  • Is it possible to look through the systems manual before signing the franchise agreement?
  • What industrial property rights are owned by the franchisor and which of these are allowed to be used by the franchisees?

Rights to a Say in Certain Matters

  • In what matters do the franchisees have rights to a say?
  • What franchisee committees exist within the system?
  • Is there an official franchisee pressure group within the system?
  • Are interested parties given a list of partners in order to be able to visit existing businesses?

Computer Set-up

  • Is there a computer network between the head office and its partner businesses enabling the electronic exchange of data?
  • Is there a computer-based MIS available?
  • Does the system have a computer-based accounts programme for invoicing?

© FranchisePORTAL GmbH

Copyright
FranchisePORTAL GmbH holds all property rights for all contents of this check list in accordance with Copyright Law. Appropriate action will be taken in the case of wrongful or unauthorized copying or use of this content.

« All franchise guide subjects

« All articles on the subject "How should you look for the right franchise system?"

Brand Search

Franchise Directory
Business Services Franchises
Cars & Automotives Franchises
Clothes & Fashion Franchises
Food Franchises
Furniture & Decoration Franchises
Health, Sport & Beauty Franchises
Leisure, Culture & Travel Franchises
Office Technology, Telecommunication & Computer Franchises
Personal Services Franchise
Restaurants & Hotels Franchises
Services for Home and Building Franchise
Miscellaneous Franchises